Why Buyers Should Ask for a Home Warranty—and Why Sellers Should Consider Offering One
When buying a home, most people think about location, layout, and loan approval. What many overlook is what happens when the water heater breaks or the air conditioner gives out in the middle of an Arizona summer. That's where a home warranty can be a game changer.
What Is a Home Warranty?
A home warranty is a service agreement that helps cover the repair or replacement cost of major systems and appliances due to normal wear and tear. Think of it as a safety net that fills the gap between what your home insurance covers (like fire or theft) and what your home systems need just to function every day (like plumbing, heating, and cooling).
It’s not required—but it can make a big difference.
A Real Story from a Real Closing
Just recently, I was working with buyers who were days away from closing on a home here in Cottonwood. It was the middle of summer—106 degrees outside—and the home’s air conditioning unit failed. Completely.
Because a home warranty hadn’t been negotiated into the contract, and the seller hadn’t ordered one upfront, the situation became stressful fast. We had to figure out who was going to pay for a new system—just 48 hours before closing.
Had a home warranty been in place, the issue could have been handled with a service call. But instead, both parties were suddenly facing unexpected thousands in out-of-pocket expenses and a potential delay in the transaction.
This is the kind of situation a warranty is designed to avoid.
Why Buyers Benefit from a Home Warranty
Peace of mind: If something breaks after you move in, you're not scrambling to cover the full repair cost.
Budget protection: A small annual fee upfront can prevent large, surprise expenses down the road.
Easier service process: Most warranty companies coordinate with licensed contractors, so you don't have to hunt down a technician.
Why Sellers Might Offer One Upfront
Adds appeal to your listing: A home warranty can make a buyer feel more confident when comparing homes.
Helps avoid post-sale disputes: If something breaks after the sale, the buyer calls the warranty company—not you.
Shows good faith: It signals to buyers that you’ve taken care of your home and are offering peace of mind.
What Home Warranties Typically Cover (and What They Don’t)
Coverage can vary depending on the company and plan, but most standard home warranties include:
Typically Covered:
HVAC systems (heating and air conditioning)
Plumbing and electrical systems
Kitchen appliances (oven, dishwasher, built-in microwave)
Washer and dryer
Water heater
Not Usually Covered (or Limited):
Pre-existing conditions
Cosmetic damage
Improper installation or lack of maintenance
Structural issues like roofs or foundations
Optional systems unless added (like septic, pool, well pump)
Always read the fine print. Some companies offer add-on coverage for those extra systems, and some cap how much they’ll pay per item.
Home Warranty Companies to Know
Here are three reputable companies I often recommend to clients based on experience and service quality in Arizona.
Old Republic Home Protection
What It Covers:
Major systems and appliances
Optional add-ons for pool equipment, second refrigerators, and more
HVAC coverage available in upper-tier plans
What to Watch For:
Basic plans do not include air conditioning
Limited availability in some states
Coverage caps on certain systems
Best For: Buyers with older systems who want to add specific protections or have a home with extra appliances.
American Home Shield (AHS)
What It Covers:
Core systems (HVAC, plumbing, electrical)
Kitchen and laundry appliances
Optional upgrades for roof leaks, electronics, and guest units
What to Watch For:
Higher monthly premiums compared to some competitors
Varying trade service call fees
Best For: Buyers who want flexible plan options and solid coverage for both systems and appliances. AHS is one of the largest and most established home warranty providers.
First American Home Warranty
What It Covers:
Appliances and systems, with high limits on replacements
Optional add-ons for well pumps, central AC, and garage door openers
What to Watch For:
Service availability can vary depending on technician networks
Limited customization compared to others
Best For: Buyers looking for generous appliance coverage and those who prefer a straightforward plan structure.
A Few Other Options
While the three above are my go-to recommendations, there are other home warranty providers you might explore, depending on your needs:
Liberty Home Guard – Strong service record and custom plans
Cinch Home Services – Includes preventative maintenance options
AFC Home Club – Lets you choose your own technician
Guard Home Warranty – Growing reputation for responsive customer service and simplified coverage tiers
Each company has its own pros and cons, coverage limits, and service processes. I always recommend doing a little research to compare plans, read the fine print, and make sure the company you choose aligns with your home’s systems and your personal comfort level. A good home warranty should feel like a safety net, not a headache.
Final Thoughts
Whether you’re buying or selling, a home warranty isn’t just a piece of paper—it’s a layer of protection. It keeps deals together when unexpected problems arise and provides everyone peace of mind during what can be a high-stress time.
And as we saw with the AC failure story, having one in place—even just days before closing—can make all the difference.
If you’re curious about which warranty might fit your situation best, or how to negotiate one into your contract, I’m always happy to help walk you through it.
Why Work with Me as Your REALTOR®
In nearly a decade of helping clients buy and sell homes in the Verde Valley, one of the most important lessons I’ve learned—and continue to teach—is that the small details in a contract can save you thousands. That’s why I always recommend negotiating a home warranty into the deal, especially in Arizona where systems like air conditioning aren’t just convenient—they’re essential.
With every transaction, I bring not just experience, but ongoing education. I regularly take updated courses on contracts, negotiation, and risk management to stay ahead of industry changes and protect your best interests. My goal is always to educate and guide you—not just get you to closing.
In fact, after seeing firsthand how a missing home warranty nearly derailed a summer closing, I’ll be doubling down on making sure my clients understand how powerful this protection can be. When you work with me, you're getting more than an agent—you’re getting a knowledgeable advocate who’s in your corner from day one.
